Definitions - Professionals

[TUSHAR SHARMA]

defination of professionals under income tax act

[Rama Krishana]

Under section 44AA the meaning of professional is, "Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette." Further under section 194J, the term professional is under, "(a) "professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;"

[DEV KUMAR KOTHARI]

Please go through at least S. 2 and also the subject index found on back side of any standard book to find out where the particular word has appeared in the book. Please do some home work before putting vage queries. A little exercise by you could have enabled you to enrich others by information gathered by you instead of raising a silly question - I say so considering your profitle. I hope you do not mind for a friendly criticism. As per S.2(36) of IT Act :"profession" includes vocation. Thus definition is inclusive and wide. However this is subject to context. Therefore, the purpsoe for which you are looking at meaning is important. Mr. Ram Krishna has rightly pointed out two important provisions in this regard. The meaning of profession and vocation is also important to compute income under pfroper head of income. Many people are wrongly considering income under head other sources of many type which should strictly fall under head income from bsuiness or profession for example directroship fees/ directros remuneration (unless it is in nature of salary), commission, brokerage, tuition fees, part time free lancing as steno, consultant,doctor , nurses, etc. Let us share knowledge and experience to built up better info-base.

AI Summary

Definition of professional under income tax law clarifies income classification and withholding obligations for service providers.
The income tax definition of "professional" is inclusive, extending to vocation and notified professions, and thereby determines whether receipts (for example director's fees, commissions, tuition or part time freelancing) are taxed as Income from Business or Profession and whether payments for such professional services attract withholding obligations under the tax provisions.